Q:

What are the benefits of a 401(k) with Fidelity?

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Quick Answer

The benefits of Fidelity 401(k) retirement plans include versatility, range of investment options, helpful online tools and administrative support, reports Fidelity Investments. Additionally, 401(k) plans offer relatively high contribution limits as well as access to funds in the event of emergencies through hardship withdrawals and loans.

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Full Answer

Fidelity 401(k) retirement plans are suitable for self-employed individuals, sole proprietors, partnerships, and C and S corporations, according to Fidelity Investments. They are also appropriate for private and public companies with at least 20 employees. In addition, the plans are adaptable to the needs of specific businesses. The plans offer a range of mutual fund investment opportunities and have clearly delineated administrative fees and expense ratios. Online access to account details, tools and resources simplifies management of the overall 401(k) plan, and experienced Fidelity experts are available to assist with plan administration and educational programs for participants.

IRS rules allow employees to contribute up to $18,000 in salary deferrals, or $24,000 for those at least 50 years old, to their 401(k) retirement plans as of 2015, states Fidelity Investment. Employers can match employee contributions as long as the total of employer and employee contributions does not exceed $53,000 annually. Employees can withdraw funds from their 401(k) accounts for hardships, disability, employment or termination. Alternatively, depending on the plan design, they may be able to take out some of the funds as a loan.

Businesses receive advice that helps in reviewing their retirement plan design and assessing annual progress together with finding solutions that work for them. They select from a variety of products and an open-architecture investing plan that allows daily data access and provides efficiency by using Internet-based communicating tools. Businesses receive webcasts, newsletters and up-to-date information on policies and regulations, according to Fidelity Investments.

Employees receive advice that educates, empowers and motivates them to invest wisely. They get individualized information that helps build their confidence in decision making. Professional help is available when selecting investments, life cycle funds and managed account services, as stated by Fidelity Investments. The plan also provides secure entry to online account information, direct customer care phone service and information on updates and retirement insights.

Fidelity 401(k) offers support to business financial advisers and other investment firms by incorporating its services together with the advisers' insights. Advisers assess the advantages the plan provides to the business and employees, according to Fidelity Investments.

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